In a bid to make Andhra Pradesh the hub for manufacturing electric vehicles in the country and a push towards making the state eco-friendly, Energy Efficiency Services Ltd (EESL) has agreed to invest close to ₹ 10,000 crore in the state and has also pledged to manufacture over 1 lakh electric vehicles over the next 5 years. This also includes 4,000 electric chargers for various departments in AP. Once the MoU is signed between EESL and the Andhra Pradesh state government, the move could see employment to over 1.05 lakh persons in state. The move will also see EESL supply around 10,000 electric vehicles to the AP government for official use.

During a teleconference on Sunday, Chief Minister N Chandrababu Naidu directed the energy department to prepare a comprehensive action plan to lease and use the electric vehicles in a phased manner.

Naidu said, "All government departments should go for e-vehicles, and the plan would later be extended to the private sector as well. Andhra Pradesh is ranked number 1 in ease of doing business, energy efficiency, promotion of renewable energy sources, and 24x7 quality power supply. We should create a world record even in usage of e-vehicles."

Saurabh Kumar, Managing Director, EESL India said, "The Indian government alone has demand for half a million electric vehicles. Switching these (to electric vehicles) will stimulate demand and initiate market transformation. Enabling this transformation with an innovative business model is important to a sustainable future."

In December last year, Tata Motors delivered the first set of Tigor EVs to EESL as part of their initiative to procure 10,000 electric vehicles. The company qualified as L1 bidder in the midst of stiff competition and won the tender floated by EESL in September 2017.